Melbourne syndicate accused of $15.8 million childcare fraud

Police in Melbourne have arrested six people accused of defrauding the government of almost $16 million through childcare welfare schemes.

The Australian Federal Police allege the group, aged from 23 to 48 and including family members, submitted fraudulent claims for a number of childcare centres in Melbourne's western suburbs from March 2014, The Age reports.

On Wednesday AFP officers seized assets from the group worth an estimated $1.1 million, including two Melbourne properties, bank accounts and a luxury four-wheel-drive.

Commander Peter Crozier said the alleged $15.8 million fraud was the largest the AFP had uncovered this year.

The group is accused of rorting a scheme that provides payments to grandparents who act as carers for their grandchildren.

Members of the group allegedly submitted falsified child attendance records to claim childcare benefits under the Grandparent Child Care Benefit scheme.